(Bloomberg) -- BMW AG said its auto business generated more cash than expected last quarter, joining rival Daimler AG in posting surprisingly positive preliminary earnings.
Automotive free cash flow in the three months ended in September was 3.07 billion euros ($3.6 billion), the Munich-based manufacturer said in a statement late Monday. That's up from 714 million euros a year ago and exceeds market expectations.
While BMW's cash-flow performance is “clearly” positive, earnings seem to be expected broadly in line with current estimates as the carmaker didn't change its forecasts, Warburg said in a note.
BMW fell 1.1% at 9:12 a.m. on Tuesday in Frankfurt, valuing the company at about 40 billion euros.
Several markets recovered faster than anticipated, leading to sales growth, and BMW also cut costs during the quarter. Its initial results and commentary mirror the situation at Mercedes-Benz maker Daimler AG, which reported better-than-expected preliminary earnings and cash flow last week. Truckmaker Volvo Group had also posted profit that exceeded analysts' estimates, and car sales across Europe unexpectedly rose in September for the first time this year.
The company will release complete details on its third-quarter results Nov. 4.
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